Correlation Between Changchun Engley and Haima Automobile
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By analyzing existing cross correlation between Changchun Engley Automobile and Haima Automobile Group, you can compare the effects of market volatilities on Changchun Engley and Haima Automobile and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Changchun Engley with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Haima Automobile.
Diversification Opportunities for Changchun Engley and Haima Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Haima is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Changchun Engley is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Changchun Engley Automobile are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Changchun Engley i.e., Changchun Engley and Haima Automobile go up and down completely randomly.
Pair Corralation between Changchun Engley and Haima Automobile
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Changchun Engley Automobile is 1.29 times less risky than Haima Automobile. The stock trades about -0.04 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Haima Automobile Group on September 4, 2024 and sell it today you would lose (51.00) from holding Haima Automobile Group or give up 9.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Haima Automobile Group
Performance |
| Timeline |
| Changchun Engley Aut |
| Haima Automobile |
Changchun Engley and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Haima Automobile
The main advantage of trading using opposite Changchun Engley and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Haima Automobile can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Changchun Engley vs. Shengda Mining Co | Changchun Engley vs. Beijing Kaiwen Education | Changchun Engley vs. Changjiang Publishing Media | Changchun Engley vs. Shandong Mining Machinery |
| Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank | Haima Automobile vs. Agricultural Bank of | Haima Automobile vs. Bank of China |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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